Understanding priority levels of ISR and FreeRTOS APIs

As per:

That means an interrupt cannot itself be interrupted by another interrupt that has a logical priority below the maximum syscall interrupt priority - and can therefore access whatever is being protected by the critical section.

Yes.

The priority registers is only 8-bits and will only implement a few bits of the 8-bit register, so presumably when the value gets shifted you are not ending up with any bits set in any of the bits implemented by the hardware, so the value will appear to the hardware as 0. However you have the code there so you can determine exactly what it is doing.